Assessing How Corporate Social Responsibility and Corporate Governance Shape Profitability in IDX-Listed Food and Beverage Companies (2020–2023)

Putri, Yeni Nor Diana
Hariyati, Hariyati
Wuryani, Eni
Triani, Ni Nyoman Alit

Electronic Journal of Education, Social Economics and Technology
Vol 6, No 2 (2025)

This research examines how Corporate Social Responsibility and Good Corporate Governance contribute to the profitability of food and beverage companies listed on the Indonesia Stock Exchange from 2020 to 2023. A quantitative approach is applied using multiple linear regression with secondary data obtained from annual reports and sustainability reports. CSR performance is evaluated through 91 indicators based on the GRI-G4 framework, while GCG is measured using a 38-item Corporate Governance Index that reflects governance structure and control mechanisms. The results show that CSR does not have a significant impact on profitability, as indicated by a significance value of 0.630. This suggests that CSR programs may require a longer time horizon before contributing to financial outcomes. Meanwhile, GCG exhibits a positive and significant effect on profitability, with a significance value of 0.027, demonstrating that strong governance practices are directly associated with improved financial performance. The F-test result indicates that CSR and GCG do not jointly influence profitability. Furthermore, the R-square value of 0.032 reveals that both variables explain only a small portion of profitability variations. Overall, the findings highlight the stronger short-term role of governance quality compared to CSR within the industry.